Cash equivalent instruments post pledging

I am aware of 50% collateral margin + 50% cash rule while maintaining overnight F&O positions. I keep reading margin received by pledging liquidbess is equivalent to cash. Now is it exactly same as cash? Can I buy options or buy shares in CNC using this cash? If not, then what all transactions are allowed with this “cash equivalent”.
My next question is, are there any other instruments (apart from liquidbees) which is considered as “cash equivalent” on Zerodha?

You can’t use margin received by pledging Liquid ETF/MF’s for buying options and Equity delivery trades, that margin can only be used for Equity Intraday, Trading Futures, and Selling Options.

Even Liquid Mutual Fund’s are considered as cash component, You can check the list here.

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Hi @ShubhS9 . Can this margin be used to trade intraday on any instruments (stocks, options, futures)?

You can use margin provided for Intraday trading in Equity, Futures and Selling Options but buying Option will still require cash.